Cashless Economy using Block-Chain Technology

Abstract

In 2016, the Indian government, led by Prime Minister Narendra Singh Modi, announced that the nation’s two highest-denomination bank notes would cease to be legal tenders. At the time, the 2 denominations accounted for roughly 86 percent of money in circulation in India. people that possessed the banknotes were to deposit them within the bank. With the move, the Indian government aimed to punish tax evaders looking back. The logic was that individuals with hoards of “black money” would must answer questions if they attempted to deposit the demonetized banknotes. Banking and technology are very closely associated and innovations have changed banking drastically over the amount of your time. The digital innovations within the banking sector started with the introduction of cash that replaced the barter system and so the gradual replacement of wax seal with digital signatures. One such disruptive innovation which is changing the banking sector globally is Block chain Technology (BCT). Block chain is shared distributed ledger which stores business transaction to a permanent unbreakable chain which may be viewed by the parties in an exceedingly transaction. Block chain technology has the potential to disrupt the financial business applications because it provides permanent and tamper proof recording of transactions in an exceedingly distributed network.